Heard on the Street: What's the Market Yellen About?

Markets rejoiced over news that Lawrence Summers is no longer in the running to head up the Fed. The cheering may be overdone. Justin Lahart reports on MoneyBeat.

This transcript has been automatically generated and may not be 100% accurate.

... I ... around the world rallied yesterday on news that Lawrence Summers to take himself out of the race ... to become the Federal Reserve chairman is he was going on today that I'm growing quite sharply but still up even today the question no that is worth asking is ... why ... morning welcome to MoneyBeat when it comes to providing monetary policy ... it isn't clear that to be much of a difference between Lawrence Summers and Janet Yellen but the market seemed to think there was Justin Langer wrote about this for her on the street ... on ... his lineage contagious and I think you're right ... I ... don't think it was as big a split between them as a mark to proceed ... no I think I think that people really just sort of thing they wanted there to be different right everybody wants to be different so ... you created differences and ... I'll even even with Aegis if you look at the soft that that that Larry Summers is written in said and what Janet Yellen is written in said ... it's not a lot of there's not a lot of daylight between a centrist Democrats right ... well and when you think about it too I mean ... what were to find out tomorrow whether the Fed was for the tapering process that whole thing ... but when ever they stored ... Ben Rene Kyi is pretty much set the Fed policy ... due to taper QE three which even in the low for a long time unless things change ... it was any real evidence that Larry Summers will come in and really opened at all that ... no not really and I think that you know people were killing off something so be it set for example ... he was skeptical ... of ... cuties effect ... but this is something that the Fed has also come around to chat ... they don't think the Kiwi is what has kept long-term rates down ... they think that what really matters is committing to keep short-term rates down for very long time ... they know ... what they have is is is a problem is that this is of the signaling problem ... if you won one week two we it seems like ... well okay that's the first step in eventually taking down torque or rate so ... their job right now ... is to ... try to online QE ... and at the same time say ... is this is me anything about worker reference this is what's called the ... the so-called forward guidance that with the consent of the buzzword is now ... the we are going to keep rates low for X number of years ... that isn't going and I wasn't going to change under Yellen Lawrence Summers or or whomever you know right I mean it was possible is even a meal filed by attorney and co owner Fergus an are you know Syd Fischer ... I think it did in this is ... when you when you look at some of these ... acted in a ... economists and policy economists think there are largely agreement they think that ... that unemployment is a really big problem ... the really worried about long-term unemployment and still Roche in which to do long-term damage the economy ... and a one ... employ me to get back up ... in there really committed to doing that India don't care ... if inflation goes up a little that a bomb in a so-called hard ... to sell around we saw yesterday not just U S stocks globally everything seemed to rally ... is the more more of the sort of market gains to trade the reason to make that rate ... I mean you could've been riding in a lot of it I think was you know if you ask people they might is that while I actually don't think that Larry Summers would of been more hawkish than Janet Yellen but I think the older people thought that touches turns